I would personally advise against this. You can
underwithhold by $1,000 with no penalty. If you're short
more than that it's better to overwithhold from salary, or
IRA. Withholding from every dividend is a mess, requires
you to send a copy of every 1099 with your return, opens
tranactions to mistakes and misintrepretation, extra
bookkeeping, etc., and probably not acceptable to some
payers, requiring you to refigure the amount from others.
BAH.

ed

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don wrote:

- quote -

Rather than trying to get each dividend payer to withheld
separately, why not take the easier route, and file 1040ES
each quarter? In this way you retain control of your
federal tax payments.

this would be my advice to any client.

ChEAr$,
Harlan Lunsford, EA n LA

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notwantingspam[at]hotmail.com (don) posted:

- quote -

There is no form specified for requesting withholding tax
from dividends. In fact, dividends are not included in the
Pub 17 list of types of income from which withholding
normally occurs -- except for discussion of "backup
withholding," which occurs only when IRS orders it because
of your tax non-payment. But if you really want to arrange
it, I would suggest you contact the companies whose stock
you hold (probably an 800-number available), and ask whether
they can arrange it, and they'll give you whatever procedure
they require.

In 13 years of tax-preparation with TaxAide, I only ran
across one 1099-DIV with tax w/h, so it's pretty unusual.
If they don't use the "extra w/h from salary" technique
you've been using, most TPs simply pay Estimated Taxes to
cover the supplemental income from interest and/or
dividends.

For that, you can use Form 1040-ES, and calculate whatever
additional taxes you need to pay for the current year, then
pay 1/4 of that amount for each of the periodic payments
required. Incidentally, once you've filed the initial
1040-ES with your first payment coupon, the IRS will mail
you a set of pre-printed coupons + envelopes ... and you
will get these in advance of the filing deadline for each
successive year.

Bill

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don wrote:

- quote -

If you look at the 1099-DIV, you will see there is a box for
the payer to report federal income tax withheld to you and
the IRS.

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don wrote:

- quote -

Sure, you could do that. The amount withheld by the payer
would be shown on the 1099-DIV form you receive at the end
of the year. The withheld amount would be added to your
other withholding on your tax return.

- quote -

Neither is withholding taken from other sources of income,
whether wages, pensions, SS benefits, unemployment comp, or
dividends. Your other alternative is to make estimated tax
payments 4 times a year, and those ARE time dependent.

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I personally prepare our income tax returns. We receive
significant yearly dividends; that are increasing every
year.

In the past, I have adjusted my employee withholding (wh) to
account for our expected taxes, such that no penalty was
incurred when we filed in April. As the dividends have
increased, I would like to have federal taxes withheld from
each stock dividend check, vs increasing my weekly wh.

My question -- Will I have to file a "form (?)", to
document when I paid those wh taxes. I know that any payroll
taxes wh for federal income taxes are not time dependent.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >